Electricity Consumption, Co2 Emission and Economic Growth (1995-2014)

Abstract

This study, the relationship between electricity consumption, carbon emission and economic growth is investigated. In the study, by using countries with carbon emissions above the world average in the period of 1995-2014, Panel Vector Autoregressive (VAR) technique was used. According to the results obtained from the panel VAR analysis, it was found that there was a negative and significant relationship between carbon emission and energy consumption. In addition, according to the results obtained from the causality test conducted in the study, one-way causality relationship was found between electricity consumption and CO2 emissions. According to these results, it can be interpreted that an improvement in electricity consumption in selected countries may affect carbon emissions. The countries involved should support investments in order to reduce emissions, do not adversely affect their economic growth and develop policies to ensure energy efficiency.

Keywords

• Carbon emission,electricity consumption,growth,panel data analysis

Elektrik Tüketimi, Karbon Emisyonu ve Ekonomik Büyüme İlişkisi (1995-2014)

Öz

Bu çalışmada elektrik tüketimi, karbon emisyonu ve ekonomik büyüme arasındaki ilişki incelenmiştir. Çalışmada 1995-2014 aralığında karbon emisyonu dünya ortalamasının üzerinde olan ülkeler kullanılarak Panel Vektör Otoregresif (VAR) tekniğiyle analiz yapılmıştır. Elde edilen sonuçlara göre karbon emisyonu ve enerji tüketimi arasında negatif ve anlamlı bir ilişki olduğu bulunmuştur. Bu sonuca göre seçilen ülkelerde elektrik tüketiminde yaşanan bir gelişmeyle karbon emisyonları etkilenecektir. Yapılan nedensellik testi sonuçlarına göre elektrik tüketiminde yaşanacak gelişmeler CO2 emisyonları üzerinde etkili olacaktır. Yani elektrik tüketiminden CO2 emisyonlarına doğru tek yönlü nedensellik ilişkisi bulunmuştur. Elektrik tüketimi CO2 emisyonuna neden oluyorsa, ülkeler ekonomik büyümeyi olumsuz etkilemeden emisyonları azaltmak için elektrik verimliliğini artırmaya yönelik yatırımlara ağırlık vermelidirler.

Anahtar Kelimeler

• Karbon Emisyonu,Elektrik Tüketimi,Büyüme

References

1. Acaravcı, A., & Öztürk, İ. (2010). Electricity consumption-growth nexus: Evidence from panel data for transition countries. Energy Economics , 32 (3), 604-608.
2. Adams, S., Klabodu, E. K., & Opoku, E. E. (2016). Energy consumption, political regime and economic growth in Sub-Saharan Africa. Energy Policy , 36-44.
3. Apergis, N., & Payne, J. E. (2009). Energy consumption and aconomic growth: evidence from the commonwealth of Independent States. Energy Economics , 641-647.
4. Apergis, N., & Payne, J. E. (2010). Renewable energy consumption and economic growth: evidence from a panel of OECD countries. Enegy Policy , 656-666.
5. Bakırtaş, T., & Akpolat, A. G. (2018). The relationship between energy consumption, urbanization, and economic growth in new emerging-market countries. Energy , 110-121.
6. Balsalobre-Lorente, D., Shahbaz, M., Roubaud, D., & Farhani, S. (2018). How economic growth, renewable electricity and natural resources contribute to CO2 emissions? Energy Policy , 113, 356-367.
7. Begum, R. A., Sohag, K., Abdullah, S. M., & Jaafar, M. (2015). CO2 emissions, energy consumption, economic and population growth in Malaysia. Renewable and Sustainable Energy Reviews , 41, 594-601.
8. Bekhet, H. A., Matar, A., & Yasmin, T. (2017). CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models. Renewable and Sustainable Energy Reviews , 70, 117-132.

9. Bella, G., Massidda, C., & Mattana, P. (2014). The relationship among CO2 emissions, electricity power consumption and GDP in OECD countries. Journal of Policy Modeling , 36 (6), 970-985.
10. Canova, F., & Ciccarelli, M. (2013). Panel VectorAutoregressive Models A Survey. European Central Bank , (Working Paper).
11. Chen, P.-Y., Chen, S.-T., Hsu, C.-S., & Chen, C.-C. (2016). Modeling the global relationships among economic growth, energy consumption and CO2 emissions. Renewable and Sustainable Energy Reviews , 65, 420-431.
12. Churchill, S. A., Inekwe, J., Ivanovski, K., & Smyth, R. (2018). The Environmental Kuznets Curve in the OECD: 1870–2014. Energy Economics (75), 389-399.
13. Ciarreta, A., & Zarraga, A. (2010). Economic growth-electricity consumption causality in 12 European countries: A dynamic panel data approach . Energy Policy , 3790-3796.
14. Cowan, W. N., Chang, T., Inglesi-Lotz, R., & Gupta, R. (2014). The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy , 66, 359-368.
15. Çoban, S., & Topcu, M. (2013). The nexus between financial development and energy consumption in the EU: A dynamic panel data analysis. Energy Economics , 81-88.
16. Dünya Bankası Veritabanı, (Erişim Tarihi: 09.10.2018)
17. Erataş, F., & Uysal, D. (2014). Çevresel Kuznets Eğrisi Yaklaşımının "BRICT" Ülkeleri Kapsamında Değerlendirilmesi. İktisat Fakültesi Mecmuası , 64, 1-25.
18. Ito, K. (2017). CO2 emissions, renewable and non-renewable energy consumption and economic growth: evidence from panel data for develpoing countries. International Economics , 1-6.
19. Karanfil, F., & Li, Y. (2015). Electricity consumption and economic growth: exploring panel-specific differences. Energy Policy , 264-277.
20. Kasman, A., & Duman, Y. S. (2015). CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis. Economic Modelling , 44, 97-103.
21. Lean, H. H., & Smyth, R. (2010). CO2 emissions, electricity consumption and output in ASEAN. Applied Energy , 87 (6), 1858-1864.
22. Lorente, D. B., Shahbaz, M., Roubaud, D., & Farhani, S. (2018). How economic growth, renewable electricity and natural resources contribute to CO2 emissions?. Energy Policy (113), 356-367.
23. Mezghani, I., & Haddad, H. B. (2017). Energy consumption and economic growth: An empirical study of the electricity consumption in Saudi Arabia. Renewable and Sustainable Energy Reviews (75), 145-156.
24. Mirza, F. M., & Kanwal, A. (2017). Energy consumption, carbon emissions and economic growth in Pakistan: Dynamic causality analysis. Renewable and Sustainable Energy Reviews (72), 1233-1240.
25. Narayan, P. K., & Smyth, R. (2009). Multivariate Granger causality between electricity consumption, export and GDP: evidence from a panel of Middle Eastern countries. Energy Policy , 229-236.
26. Narayan, P. K., Narayan, S., & Popp, S. (2010). Does electricity consumption panel Granger cause GDP? A new global evidence. Applied Energy , 3294-3298.
27. Omri, A. (2013). Our objective, in this study, is to investigate the impact of economic growth and CO2 emissions on energy consumption for a panel of 58 countries during 1990–2012. For this reason, we used, as an investigate technique, a dynamic panel data model, which fo. Energy Economics , 40, 657-664.
28. Ouyang, Y., & Li, P. (2018). On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach. Energy Economics , 238-252.
29. Özmen, T. M. (2009). Sera Gazı - Küresel Isınma ve Kyoto Protokolü. TMMOB İnşaat Mühendisleri Odası Yayını, 453-2009/1, 42-46.
30. Payne, J. E. (2010). A survey of the electricity consumption-growth literature. Applied Energy , 87 (3), 723-731.
31. Sadorsky, P. (2012). Energy consumption, output and trade in South America. Energy Economics , 476-488.
32. Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports , 1, 62-70.
33. Salahuddin, M., & Gow, J. (2014). Economic growth, energy consumption and CO2 emissions in Gulf Cooperation Council countries. Energy , 73, 44-58.
34. Salahuddin, M., Alam, K., Öztürk, İ., & Sohag, K. (2018). The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. 81 (2), 2002-2010.
35. Salahuddin, M., Gow, J., & Ozturk, İ. (2015). Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renewable and Sustainable Energy Reviews (51), 317-326.
36. Soytaş, U., & Sarı, R. (2003). Energy consumption and GDP: causality relationship in G-7 countries and emerging marketing. Energy Economics , 33-37.
37. Wolde-Rufael, Y. (2006). Electricity consumption and economic growth: a time series experience for 17 African countries. Energy Policy , 34 (10), 1106-1114.
38. Yıldırım, E., & Aslan, A. (2012). Energy consumption and economic growth nexus for 17 highly developed OECD countries: further evidence based on bootstrap-corrected causality test. Energy Policy , 985-993.
39. Zhang, C., Zhou, K., Yang, S., & Shao, Z. (2017). On electricity consumption and economic growth in China. Renewable and Sustainable Energy Reviews (76), 353-368.
40. Zhang, X. P., & Cheng, X. M. (2009). Energy consumption, carbon emissions, and economic growth in China. Ecological Economics , 68 (10), 2706-2712.